User Account

All Pages

Retirement savings plan investment opportunity

Assignment Help Finance Basics
Reference no: EM133000879

Mr. Paul is at the age of 25, and his friend David (an insurance/mutual fund broker) offered him a retirement savings plan investment opportunity. Please help Paul to calculate his investment amount for the financial product based on the following information.

a) Paul made the initial investment of XXXCanadian dollar at the age of 25;

b) When Paul turns his age to 45years (20years), Paul can withdraw cnd$5,000 each year before his retirement at the age of 65 (Another 20 years) from the insurance company for his family cash flow needs;

c) When Paul retires at the age of 65, Paul finally can get annual amount of Cnd$20,000 for 20 years when Paul turns to the age of 85;

d) David/Insurance company assume the annual return is 12%

Please do the calculation How much cnd$ will Mr. Paul deposit for the investment at the age of 25 (suggest to draw the timeline for this case) illustrate the numbers based on time value calculations step by step

Reference no: EM133000879

Questions Cloud

Research the stock market activity : Research the stock market activity for both companies, Amazon and Target. In a minimum of one paragraph for each company
What are the terminal year cash flows for old tom morrison : Robertson's tax rate is 30%. What are the terminal year cash flows? (Assume that depreciation is not tax deductible.) Round your answer to the nearest dollar.
What is the trade off if beximco renews the agreement : Do you think BEXIMCO Pharma should renew agreement with the Thailand retailer for another 3 years? What is the trade off if BEXIMCO renews the agreement?
Determine Sue recognized gain or loss : Assume the facts were the same, except that Bill had contributed $145,000 worth of services and $5000 cash. Determine Sue's recognized gain or loss
Retirement savings plan investment opportunity : Mr. Paul is at the age of 25, and his friend David (an insurance/mutual fund broker) offered him a retirement savings plan investment opportunity.
What are operating cash flows in the first year : The machinery has an expected salvage value of $25,000 at the end of two years. Robertson's tax rate is 30%. What are operating cash flows in the first year?
Enter the journal entry to establish the petty cash fund : Enter the journal entry to establish the petty cash fund. Enter an appropriate description, and enter the date in the format dd/mmm (ie. 15/Jan).
How much is the deferred tax asset : Unearned income of P600,000 and P400,000 as of April 1 and December 31, respectively. How much is the deferred tax asset
What is the total initial cash outflow : A corporation is considering replacing older equipment. The old machine is fully depreciated and cost $44,837.00 seven years ago. The old equipment currently ha

Reviews

Write a Review

Finance Basics Questions & Answers

  Which of the following will increase the current value

An increase in which of the following will increase the current value of a stock according to the dividend growth model? I. dividend amount II. number of future dividends, provided the current number is less than infinite III. discount rate IV.

  How much will she owe on her loan after 4 years of payments

Tai consolidated her outstanding debt into a low-interest personal loan of $50,000 at a rate of 6% compounded monthly (j12) for a term of 10 years.

  How you intend to ensure the organizations vision mission

write a proposal of no more than 750 words outlining the research approach you will use for your strategic plan due in

  Payout ratio stay constant for the next four years

Assume that ROE and payout ratio stay constant for the next four years. After that, competition forces ROE down to 11% and the company increases

  What is the standard deviation of return on portfolio

Question: What is the standard deviation of return on this portfolio and what is the covariance of the stock return with the return of the portfolio?

  Convert the fixed to floating and floating to fixed via swap

Convert the fixed to floating and floating to fixed via swaP

  Real inflation-adjusted rate of return of nancy

Nancy's son plans to start college when he graduates from High School. Assume that after-tax annual rate of return that Nancy is able to earn from her investmen

  How man shares will remain after the repurchase

A firm has 10 million shares outstanding with a market price of $20 per share. The firm has $25 million in extra cash (short-term investments).

  What will be the rate of return on investment

She expects that you will receive $25,000 back at the end of three years. REQUIRED: If all goes according to plan, what will be the rate of return.

  The companys tax rate is 30 and its discount rate is 8 the

a company needs an increase in working capital of 30000 in a project that will last 4 years. the companys tax rate is

  What is the breakeven stock price

What is the breakeven stock price above which the trader makes a profit?

  Announcement of the seo and the new shares

If the stock price dropped 3% on announcement of the SEO and the new shares were sold at that price, how much money would Metropolitan receive?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd